XRP is considered as one of the most valuable assets in the crypto-verse in terms of scalability and transaction speeds. It stood third on the list of the world’s top cryptocurrencies, with a market cap of $15.97 billion. The 24-hour trading volume of XRP was $3.91 billion, with XRP being priced at $0.37, at press time.
On the other hand, Stellar Lumens’ market cap was $2.38 billion. The 24-hour trading volume of the token was $6.29 million and it was priced at $0.124. It stood ninth in the top-10 cryptocurrency list.
The one-day chart pictured two uptrends. The first uptrend was from $0.328 to $0.370and the second uptrend extended from $0.309 to $0.454. The resistance point stood at $0.455 and the support lines stood at $0.290 and $0.316.
The Bollinger Bands indicated high volatility rate in the market.
The Awesome Oscillator was showing a bullish buying opportunity as the short-term momentum was greater than the long-term momentum.
The Chaikin Money Flow indicator line was above the zero-line, indicating that the flow of capital into the XRP market was greater than the capital flowing out of it.
The one-day XLM chart showed a downtrend from $0.209 to $0.141. There were three resistance lines which stood at $0.205, $0.169 and $0.142. The graph also showed three support lines at $0.116, $0.087 and $0.075.
The Bollinger Bands were diverging and depicted high volatility in the XLM market.
The Awesome Oscillator indicated that the closing bar was green and pointed towards a bullish buying opportunity. Also, the short-term momentum was exceeding the long-term momentum.
Chaikin Money Flow indicator was above the zero-line, indicating that the flow of money into the XLM market was greater than the money flowing out of it. However, the CMF was falling.
XRP continued to trade positively, while XLM seemed to be losing its bullish momentum.
British Politician Calls Bitcoin “A Right-Wing Nightmare,” Warns “Inevitable Crypto Crisis Lurking Around the Corner”
Alex Sobel, Labour and Cooperative MP for Northern English district of Leeds North West, has called Bitcoin, “…a right-wing nightmare which facilitates tax evasion, money laundering and environmental degradation.”
He has also warned that, “…the Left has continuously failed to engage with questions of finance, technology, and business…(and) Getting wise to the con-artistry and grift of the crypto movement, and countering its ideological appeal, is necessary…to deal with the inevitable crypto crisis that is lurking around the corner.”
Sobel, who sits on the Environmental Audit Committee, the Backbench Business Committee and who previously ran Social Enterprise Yorkshire, made the comments in an article called “The Bitcoin Scam” he penned for Tribune Magazine in late May.
In the article, Sobel says that, though neoliberalism and nationalism are commonly understood to be the “primary ideological opponent(s) of socialism,” “anarcho-capitalist” ideology has been boosted by the advent of Bitcoin:
“…(L)ibertarians or anarcho-capitalists…believe that the state should be abolished and replaced with a world of pure property rights…For much of its existence this ideology was relegated to subcultures and the political fringe. But, in 2009, it had a major breakthrough: Bitcoin…a digital cash or commodity system whose adherents promise an escape from banking surveillance, fiat currency, inflationary monetary policy, and taxation.”
Bitcoin proponents laud the invention for enabling “uncensorable” and “immutable” transactions via an expensive and energy- consumptive process called “proof of work.”
Bitcoin’s many network participants all maintain a heavily-encrypted copy of the entire Bitcoin transaction history and expend copious electricity competing for a prize of bitcoins.
Participants believe the network and transactions are maintained by “peers” and not by “venal bankers,” Sobel writes.
But the notion that cryptos have so far been used for anything other than criminal finance, Sobel writes, is “laughable.”
As well, crypto’s current bid for legitimacy shifts them “…ever closer to the worlds of politics and finance — the realms its early adopters argued they were escaping.”
Meanwhile, while processing relatively few transactions, Bitcoin’s energy consumption is equivalent to that of “medium-sized nations”:
“You may find it helpful to think of the process of bitcoin mining as akin to millions of computers expending ever-increasing amounts of energy buying quintillions of lottery tickets with one winner every ten minutes. The amount of power wasted on useless duplication of effort is staggering. At times, power demand for bitcoin alone has surpassed that of nations the size of Ireland or the Netherlands. You don’t have to be an environmentalist for this to strike you as less than ideal.”
As the general public’s taste for a carbon-heavy network that enables criminal finance may have faltered, calls for “blockchain, not Bitcoin” have concurrently increased.
But Sobel notes that “blockchain” and cryptocurrencies have been conflated in order to ensure a continuous flow of investor cash into cryptocurrency projects of questionable worth:
“The accidental (and often intentional) effect of all this earnest blockchain noise is to sustain interest and hype in the adjacent technology of cryptocurrencies. From the perspective of the grifters, charlatans, and scammers, it adds a much-needed veneer of respectability that functions to disguise more nefarious activities.”
Meanwhile, Sobel joins a growing list of detractors, including David Gerard (who fact-checked Sobel’s article), claiming there’s no-there-there when it comes to blockchain:
“…(T)heir advocates would argue, while cryptocurrencies might be flawed and wasteful, the underlying technology — blockchain — is a world-changing innovation. This, sadly, is also untrue. Blockchain is a solution in search of a problem. Google ‘blockchain uses’ and you’ll discover a huge list of test cases. Upon closer inspection, few will have moved beyond trial phase and those that have often do not make use of distributed consensus at all.”
Sobel gives as an example, “One frequently-championed blockchain project involved organising aid for a Jordanian refugee camp.”
Many firms have looked into how blockchains might be cost effective in places otherwise lacking in infrastructure.
In the case of the Jordanian project, Sobel writes:
“The claim was that the company, Building Blocks, was surpassing the inefficiency of food aid distribution by creating a system that allowed refugees to easily purchase food. Instead of issuing tokens or pre-paid cards to track family purchases, the scheme tracked individual spending by uploading biometric data to their blockchain. To purchase goods, residents of the camps had their iris scanned.”
Turns out this project was just doing a regular database, Sobel claims:
“But, despite the hype, it was later revealed that the system ran on a ‘permissioned blockchain’ with a central authority who controlled use of the network — and who could rewrite the database…The refugees in the Jordanian camp were not ‘on the blockchain’; they were merely listed in a centralised database.”
And while well-intentioned libertarians have envisioned a cryptocurrency-underpinned Utopia, their prized currencies appear to be majority-owned by a set of elites, Sobel writes:
“The libertarians may cry freedom and equality, but their world is the opposite. A Citigroup analysis of Bitcoin from 2014 found that ‘47 individuals held about 30%, another 900 held a further 20%, the next 10,000 about 25% and another million about 20%.’ No country on earth has such an unequal distribution of assets and wealth.”
The MP ends by advising politicians to be wary of crypto-lobbyists door-knocking for the sector:
“So, when the crypto lobbyists show up in parliament with a PR budget, the Labour Party should be paying attention. What they’re selling is an expression of political reaction, thoroughly intertwined with offshore tax avoidance, indelibly linked to black market activity, and implicated in environmental degradation. As for blockchain, in every proposed implementation, the merits of the technology are invariably oversold — with cheaper, more robust, database solutions readily available.
Korean Crypto Exchanges Update Terms to Accept Liability for Hacks
A number of South Korean cryptocurrency exchanges have been forced to update their terms and conditions to accept liability for potential hacks and service issues.
According to a report by the Yonhap News Agency, South Korea’s antitrust watchdog, the Fair Trade Commission, said Monday that five exchanges in total had made the change after it issued a corrective recommendation.
Bithumb, an exchange that has been hacked twice in a year, is included in the five exchanges, the report says. Last June, the platform lost roughly $31 million in cryptocurrencies, and, in May 2019, a possible insider job saw around $20 million in the company’s holdings of XRP and EOS disappear.
Previously the exchanges’ T&Cs had stated that they would not compensate users if not found to be willfully or grossly negligent.
After it’s 2018 hack, Bithumb pledged to refund users that lost cryptos, despite its T&Cs.
In January, only a third of inspected cryptocurrency exchanges got a full pass in a government security audit.
At the time, several government agencies inspected a total of 21 crypto exchanges from September to December 2018, examining 85 different security aspects. However, only 7 – Upbit, Bithumb, Gopax, Korbit, Coinone, Hanbitco, and Huobi Korea – cleared all the tests.
3 Reasons Bitcoin Is Rallying Above $9K
Bitcoin rose above $9,000 over the weekend, taking cumulative year-to-date gains to more than 150 percent.
The leading cryptocurrency by market value clocked a 13-month high of $9,391 on Bitstamp on Sunday and was last seen trading at $9,200, representing 22 percent gains on last Monday’s low of $7,524.
Cryptocurrency market experts and investors are associating the sharp price gains seen over the last six days with a number of factors, the most prominent being Facebook’s coming foray into cryptocurrencies.
Facebook to launch ‘GlobalCoin’
The social media giant is set to unveil its very own stablecoin, reportedly called GlobalCoin on Tuesday, June 17, with a launch to follow in 2020.
The project has reportedly already secured the backing of over a dozen companies and is seen boosting the pace of widespread cryptocurrency adoption by many including Barry Silbert, the founder and chief executive of Digital Currency Group.
Meanwhile, Spencer Bogart, General Partner at Blockchain Capital, believes Facebook’s crypto effort is among the most bullish external tailwinds for bitcoin in 2019/2020, as it will ease the friction in acquiring digital assets by creating a circular economy.
Further, there is a consensus in the investor community that Facebook’s crypto will create awareness that a private, non-central bank issued currency can exist, leading to increased adoption of bitcoin and other cryptocurrencies.
The hype garnered by GlobalCoin likely put a bid under the cryptocurrency over the weekend. That, however, makes BTC vulnerable to “sell the fact” trading following the expected white paper launch on Tuesday.
Binance.com bars US customers
The announcement led to a sharp sell-off in Binance’s very own native asset, Binance Coin (BNB). The price of BNB fell 12.8 percent to 25,209 satoshis (a satoshi being 0.00000001 of a BTC) on Friday, and hit a one-month low of 34,906 satoshis on Sunday.
The slide indicates that investors have rotated money out of BNB and possibly into bitcoin, pushing the top cryptocurrency higher, as discussed by Alex Kruger – a prominent Fundamental & Technical Analyst.
Litecoin approaches ‘halving’ event
The upcoming litecoin (LTC) halving, set to trigger on August 5, 2019, will cut the reward gained from mining the cryptocurrency by half, meaning LTC will become a more scarce asset overall.
”Halvings’ as they are known, typically result in an overall boost in value for the crypto markets, as the assets themselves become harder to obtain and therefore increase in value.
Litecoin has already rallied 353 percent this year and may have added fuel to the ongoing bitcoin’s price rally. It is worth noting that litecoin led the broader markets higher in the first quarter, with 100 percent gains over the period.
As noted earlier, bitcoin may see a pullback following Facebook’s announcement on Tuesday. The long duration charts, however, indicate that corrections, if any, could be short-lived.
Weekly and monthly charts
Bitcoin jumped 17.57 percent last week (above left), invalidating the bearish view put forward by the previous week’s close below $8,000.
Further, the 5- and 10-week moving averages are trending north, indicating a bullish setup, while Chaikin money flow is reporting the strongest buying pressure since December with an above-0.32 reading.
The bullish case looks stronger if we take into account the falling channel breakout on the monthly chart (above right).
As a result, BTC could rise to $10,000 over the next few weeks. In the short-term, a price pullback cannot be ruled out.
BTC printed 13-month highs above $9,300 on Sunday but failed to close above $9,097 – the high of the bearish outside reversal candle created on May 30.
Another failure to secure a UTC close above $9,097 may trigger profit taking on long positions, leading to a price pullback to the 200-hour moving average (MA), currently at $8,300.
Disclosure: The author holds no cryptocurrency at the time of writ:coindesk